Software giant, Microsoft owes at least 28.9 billion dollars in back taxes according to the U.S. Internal Revenue Service (IRS), the company revealed in a regulatory filing on Wednesday.
However, Microsoft said it would appeal the decision.
Microsoft disclosed in a regulatory filing that on Sept. 26, it had received notices of proposed adjustment from the IRS for the tax years 2004 to 2013.
The primary issues in the notices related to intercompany transfer pricing.
The IRS is seeking an additional tax payment of 28.9 billion dollars plus penalties and interest.
The company said it disagreed with the proposed adjustments and will vigorously contest the notices through the IRS’s administrative appeals office and, if necessary, judicial proceedings.
Microsoft said it does not expect a final resolution of these issues in the next 12 months. (dpa/NAN)
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